I make good money but have nothing to show for it
Dear Cheryl & Mack,
I'm in a bit of a predicament, and I could really use your help.
I'm making really good money, but I have nothing to show for it for some reason.
Where is all my cash going?!
I'm not talking about a small chunk of change here, I mean a substantial amount. I work in tech, and I'm making six figures, but at the end of the month, my bank account looks pretty much the same as it did before.
I feel like I'm living paycheck to paycheck, but I don't know where all my money is going.
It's not like I'm living extravagantly, either.
I don't fly first class or go on extravagant vacations, but I'm not exactly living like a pauper.
I have a decent apartment, a car, and I like to eat out once in a while. But other than that, I'm pretty frugal.
So what am I doing wrong? Do I need to hire a financial advisor? Do I need to start tracking my expenses? Or am I just cursed?
I want to start building some wealth and investing in my future, but I can't do that if I don't know where my money is going.
Any tips or advice you could offer would be greatly appreciated.
Thanks in advance!
Signed,
Feeling Broke
Dear Feeling Broke,
It seems like you're in a tough spot. A closer look at your spending habits and creating a budget could help you understand where your money is going and how to manage it better. You could also automate your savings to build a nest egg and an emergency fund.
If you're unsure where to start, you could reach out to a financial advisor like us.
We could help you create a personalized financial plan that aligns with your goals and needs. Investing, retirement planning, and other areas of finance could be some valuable insights we could provide.
But let's talk about your mindset around money.
Everyone's approach to money is different and influenced by upbringing, culture, and personal experiences.
It could be helpful to assess your past and present attitudes toward money and focus on adopting a financial abundance mindset.
This mindset views money as a tool to improve your life, not a negative force.
It's common for people to have negative beliefs about money, which could lead to them giving it away unconsciously, even if they aren't spending it.
This is especially true for those who grew up hearing that money is bad.
They could feel guilty and have a compulsion to dispose of it through unnecessary expenses, extravagant gifts, or giving it to friends and family.
To develop a healthy relationship with money, it's crucial to recognize and acknowledge these negative beliefs.
You can reframe your thoughts around money and see it as a positive force that helps you achieve your goals and live the life you desire.
You could start by saving, investing wisely, and spending intentionally.
It takes time and practice, but you could cultivate a mindset of abundance that serves you well in the present and future.
It might also be beneficial to talk to a therapist if you need extra support.